Segment Information

6 Months Ended

Jun. 30, 2019

The Company evaluates performance and allocates resources based on segment income, which is not a defined term under GAAP. The Company defines segment income as income from operations adjusted to exclude intangibles amortization charges, provisions for asbestos and restructuring and other and the impact of fair value adjustments related to the sale of inventory acquired in an acquisition.

Segment income should not be considered in isolation or as a substitute for net income prepared in accordance with GAAP and may not be comparable to calculations of similarly titled measures by other companies.

The tables below present information about the Company's operating segments.



	External Sales				External Sales
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Americas Beverage	$	890	$	848	$	1,678	$	1,606
European Beverage	410		405		749		776
European Food	483		514		906		942
Asia Pacific	319		332		640		669
Transit Packaging	592		620		1,161		620
Total reportable segments	2,694		2,719		5,134		4,613
Non-reportable segments	341		327		656		630
Total	$	3,035	$	3,046	$	5,790	$	5,243

The primary sources of revenue included in non-reportable segments are the Company's food can and closures business in North America, aerosol can businesses in North America and Europe, its promotional packaging business in Europe and its tooling and equipment operations in the U.S. and U.K.



	Intersegment Sales				Intersegment Sales
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Americas Beverage	$	2	$	25	$	6	$	35
European Beverage	1		1		2		1
European Food	22		21		40		43
Transit Packaging	1		1		4		1
Total reportable segments	26		48		52		80
Non-reportable segments	40		46		66		73
Total	$	66	$	94	$	118	$	153

Intersegment sales primarily include sales of ends and components used to manufacture cans, such as printed and coated metal, as well as parts and equipment used in the manufacturing process.



	Segment Income				Segment Income
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Americas Beverage	$	139	$	113	$	252	$	211
European Beverage	60		59		99		114
European Food	62		85		110		141
Asia Pacific	51		47		96		91
Transit Packaging	80		94		153		94
Total reportable segments	$	392	$	398	$	710	$	651

A reconciliation of segment income of reportable segments to income before income taxes is as follows:



	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2019			2018			2019			2018
Segment income of reportable segments	$	392		$	398		$	710		$	651
Segment income of non-reportable segments	33			31			69			62
Corporate and unallocated items	(39		)	(40		)	(78		)	(79		)
Restructuring and other	45			(16		)	41			(29		)
Amortization of intangibles	(47		)	(41		)	(94		)	(52		)
Accelerated depreciation	(1		)	—			(3		)	—
Fair value adjustment to inventory	—			(40		)	—			(40		)
Other pension and postretirement	(29		)	17			(11		)	34
Loss from early extinguishments of debt	—			—			(6		)	—
Interest expense	(97		)	(103		)	(195		)	(177		)
Interest income	4			5			7			11
Foreign exchange	(1		)	(10		)	(2		)	(28		)
Income before income taxes	$	260		$	201		$	438		$	353

For the three and six months ended June 30, 2019 and 2018, intercompany profits of $3 and $4 were eliminated within segment income of non-reportable segments.

Corporate and unallocated items includes corporate and division administrative costs, technology costs and fair value adjustments for the sale of inventory acquired in an acquisition.